5 Simple Tips to Save Money on Your Home Insurance

Home insurance is often seen as a grudge purchase, you need it, but it can often be costly. In this economic downturn, it’s important to know how to save money on big purchases.

These simple tips could help you make savings when purchasing home insurance:

1. It’s always important to compare quotes from several different insurance providers. Comparing insurance online can be very helpful for this as you can see quotes from multiple insurance providers in one place, without the hassle of going to each individual company. Always compare home insurance quotes to similar plans, considering all the policy features as well as price.

2. Once you’ve been given your quotes, be aware that the cheapest quote may not always offer adequate coverage. Be sure to check the finer details of the quote, so you know exactly what is covered and what is not. It’s important to have the right level of coverage on your policy as being under-insured could cost you a lot more in the event of your claim exceeds your coverage.

3. Your premium should reduce if you offer to pay a higher excess. The excess is the amount of money you’d contribute in the event of a claim. Normally, you’ll be seen as less of a risk to the insurer if you offer to pay a larger excess. In return, your premium might be lowered. Be certain that you’re willing and able to pay this amount if you ever needed to claim.

4. Security in your home is important and many insurance companies reward this with lower monthly or annual premiums. For example, insurers may look more favorably on you if you have a fully operational burglar alarm or you’re a member of a neighborhood watch program. Again, this is because your policy will be viewed as a lower risk policy.

5. It’s always important to accurately calculate the amount of insurance needed to cover the value of your possessions. If you over-estimate, you may be paying for coverage coverage you don’t need. By doing a thorough analysis of the contents in your home before you look for a quote, you’ll be sure of the amount of coverage you actually need.

Also, remember to give an accurate rebuild cost for your property; this is not the market value of your home but how much it would cost to rebuild the house. This price can be lower than the price that your home would sell for on the open market.

With many households looking to reduce their outgoings, it’s useful to know how to save money on big purchases. These simple tips should show you what to look out for when buying home insurance.

This post was written by Katie Sheeran of insurance site Policy Expert.

The founder and editor of HighYieldSavingsAccounts.net with a passion for personal finance and experience in the financial industry.

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